Grandi Stazioni loses 30-year lease of Main Railway Station due to
renovation delays

The Italian company Grandi Stazioni has lost its 30-year lease of the Main
Railway Station in Prague, after failing to complete a renovation of the
historical part of the building by October 2016. Czech Railways
Administration says the deadline can no longer be extended, but the Italian
firm is still pushing for a compromise solution on the argument that all
sides would lose out by ending cooperation prematurely.

Photo: CTK
Thirteen years ago Prague’s Main Railway Station was in a dismal state of
disrepair and, unable to finance a reconstruction of this kind, Czech
Railways Administration offered companies a 30-year lease of the premises
in return for renovating the station. Grandi Stazioni won the contract in
2002 and the renovated newer part of the station with its rows of shops and
cafés opened with fanfare in April, 2011.
However the renovation of the historical part of the building with its Art
Nouveau architecture designed by architect Josef Fanta –was dogged by problems.
The original deadline,in 2013, was extended until October 2016, but in
recent months it became clear the company had no chance of meeting even
that deadline. It requested another extension, until 2018.

Dan Ťok, photo: Filip Jandourek
Although it seemed that further negotiation might take place, on Thursday
Czech Railways Administration announced that Grandi Stazioni had lost its
30-year lease contract by failing to meet the terms of the agreement and
asked it to vacate the premises. It lawyers claim that extending the
deadline yet again is out of the question since this would be in violation
of the law on public tenders.

Grandi Stazioni’s CEO Andrea Odoardi says the conditions of the
agreement could not be met due to the poor condition of the historical part
of the station which was much worse than anticipated, requiring more money
and a significantly longer renovation schedule. Transport Minister Dan Ťok
says the argument is not convincing.

“This excuse is really lame. Anyone undertaking a renovation knows there
may be extra work involved and this was taken into account in the contract.
Thirteen years seems long enough.”

Fanta Café at Prague’s Main Station, photo: Anton Kaimakov
Grandi Stazioni has confirmed that it received official notification of
the decision and a request to vacate the premises, but appears to be still
pushing for a compromise agreement on the argument that scrapping the deal
would be a loss for everyone involved. It says that if all else fails it
will take the matter to court, seeking damages for loss of profit as well
the money which had already been invested into the reconstruction. It
moreover points out that it has the intellectual property rights to the
project documentation for renovation. The Czech National Heritage Institute
has expressed concern regarding this particular aspect and the future of
the ongoing renovation.

Whether this particular concern can still reverse the decision or whether
the two sides are in the process of negotiating a termination settlement is
not yet clear.